Bitcoin pushed higher, recovering from earlier losses to reach around $62,410 following the release of the latest US inflation data, which showed the Consumer Price Index rose to its highest level in over three years. The annual inflation rate stood at 4.2%, aligning with economists’ expectations and easing worries about an unexpectedly sharp inflation jump.
The inflation report highlighted rising energy and gasoline costs, driven in part by renewed geopolitical tensions in the Middle East. While these factors generally raise concerns of tighter monetary policy—potentially dampening risk assets like cryptocurrencies—bitcoin’s price rally indicates that traders interpreted the data as within anticipated parameters, avoiding a more hawkish response from the Federal Reserve.
Technically, bitcoin found support near its 200-week exponential moving average and a key psychological price range between $60,000 and $62,000, which contributed to the price rebound. However, this recovery does not yet signal a sustained upward trend.
On shorter timeframes, bitcoin remains constrained below critical resistance levels, such as the 20-period and 50-period simple moving averages on the four-hour chart. The price appears to be consolidating within a bear flag pattern—an indicator often signaling a potential continuation of a downtrend rather than a full reversal.
Should bitcoin break below the lower trend line of this pattern, technical analysis predicts a decline toward approximately $57,800 in June, representing a near 8 percent drop from current levels.
Alternatively, a decisive breakout above the cluster of moving averages and the flag’s upper boundary would challenge this bearish outlook, possibly paving the way for further gains. Until such a breakout occurs, traders remain cautious amid conflicting signals.